Poly-p-phenylene benzobisoxazole (PBO) fiber is a new fiber with high ballistic performance, such as excellent heat and flame resistance and super mechanical properties. Consequently, increasing attention has been paid to its applications in the field of ballistic resistance. To identify the damage mechanism of PBO composite target caused by the high-velocity penetration of cylindrical projectiles and the energy conversion mode involved in the penetration process, this paper constructs a target damage engineering analysis model using the energy method in combination with stress wave propagation and projectile motion analysis. The residual velocity of the steel cylindrical projectile after perforating a PBO composite laminate is measured through ballistic tests, and it is compared with the value predicted by the analysis model. Comparison results show that the predicted value by the model is in good agreement with the measurement, with an error of less than 2.6%, thereby proving the validity of the constructed analysis model.